William Christie on the Consequences of Research

As he was studying the operations of the major financial markets in the mid-1990s, Professor Christie, along with collaborator Paul Schultz, concluded that Nasdaq market makers were implicitly colluding to maintain artificially high trading profits at the expense of investors. Class action lawsuits led to settlements with securities firms topping $1 billion. The findings, published in the Journal of Finance in December 1994, also helped usher in a series of reforms that endure today.